Computer information networks form an integral component of modern health care systems in the United States. Hospital information systems reduce administrative costs while improving the quality of care. Unfortunately, the highly distributed nature of patient information, materials inventory and cost accounting data in a hospital requires the data collection process to remain labor intensive, inefficient and prone to errors. Although a number of technologies such as distributed data processing systems and radio frequency telemetry are available for automating data flow, conventional hardware is cost prohibitive. The proposed research introduces a new technology, free-space optoelectronic communications, as a potentially cost effective solution for the automation of hospital information systems. A fully integrated optical telemetry system called PHOTON is based on a combination of systems previously commercialized by the applicant. PHOTON employs low-cost, optical transceivers for patient identification, tracking and monitoring; hospital inventory control and cost accounting. Phase I activities will focus on user requirements, system design and the demonstration of an operational PHOTON prototype. A cost analysis in Phase I will determine the practicality of the application. The PHOTON system will be developed in Phase II and tested in a hospital environment. If successful, PHOTON will be fully commercialized in Phase III.